Structure and Governance

The Rwanda Stock Exchange Limited (RSE) was incorporated in October 2005 and opened for trading in January 2011. The RSE replaced the Rwanda Over-the-Counter Exchange which had been operational since January 2008.

The Exchange was demutualized from its inception and registered as a company limited by shares. The Government of Rwanda owns 20% of shares and the Rwanda Social Security Board (RSSB) owns another 10%. Member firms, including Faida Securities, African Alliance, CDH Capital, Baraka Capital, MBEA, and Dyer & Blair, own 10% each. MAGERWA owns 6%, the Development Bank of Rwanda owns 2% and SONARWA and SORAS own 1% each.

The RSE’s Board of Directors is comprised of seven members. The Government of Rwanda has one representative. Members of the Exchange have three representatives. Institutional investors have one. Members of the public and/or professional bodies have one. Listed companies also have one representative.

Trading System

The RSE uses an open outcry trading system. Trading is conducted at the trading floor during the hours of 9:00 a.m. and 12:00 p.m., Monday through Friday.

Members trade through an over-the-counter (OTC) market allowing them to buy and sell to clients directly in their offices. Members are also allowed to buy from, and sell to, other members outside of normal trading hours. All OTC transactions must be reported to the RSE no later than one hour after the transaction(s). They are reported in the next formal trading session for the purposes of settlement.

Commissions

The table below summarizes commissions on equities.

Transaction Value

Net Brokerage Commission

Transaction Fee

Investor Compensation Fund Fee

CSD Settlement Transaction Levy

Total Cost to Investors

Up to RWF 100,000,000

1.5%

0.14%

0.02%

0.05%

1.71% or brokerage plus statutory

Above RWF 100,000,000

Open to negotiation and subject to a minimum of 1.25%

0.14%

0.02%

0.05%

Clearing and Settlement

The clearing and settlement process ensures the transfer of ownership of the securities traded on the RSE from the seller to the buyer and the transfer of funds for those securities from the buyer to the seller.

The Central Securities Depository (CSD) provides Central Depository Agents (CDAs) and their settlement banks with settlement reports by 3:30 p.m. on the day of trade (T). The CSD provides CDAs and their settlement banks with their final settlement reports by 3:30 p.m. on T+1.

CDAs are required to have funds available in a settlement account with a settlement bank, as per the terms of the final settlement report, before 5:00 p.m. on T+1, the time at which the settlement bank notifies CDAs of their settlement position.

The CSD submits settlement instructions for trades on trade day (T) at 9:00 a.m. on T+2. The settlement bank then transfers funds for settlement, in accordance with the settlement instructions, by 10:00 a.m. on T+2. The clearing bank confirms settlement of funds by fax, or otherwise agreed method, to the CSD immediately. At that point, the CSD transfers the securities. Settlement of funds and movement of securities is completed by 10:00 a.m. on T+2.

Market Holidays

1st January: New Year’s day

2nd January: Day after New Year’s Day

1st February: National Heroes’ Day

Date Varies: Good Friday

7th April: Genocide against the Tutsi Memorial Day

1st May: Labour Day

1st July: Independence Day

4th July: Liberation Day

Friday of first week of August: Umuganura Day

15th August: Assumption Day

25th December: Christmas Day

26th December: Boxing Day

EID EL FITR: the date shall be announced each year by Rwanda Muslims’ Association

EID AL-ADHA: the date shall be announced each year by Rwanda Muslims’ Association

Coincidence of official holidays with the days of weekend

Except 7th April, Genocide against the Tutsi Memorial Day, if an official holiday falls on one (1) day of the weekend, the following working day shall be an official holiday. If two (2) consecutive official holidays fall on a day of weekend, the two (2) official holidays shall be compensated in one (1) working day that follows. In case of coincidence of two (2) official holidays, the following working day shall be an official holiday to compensate one (1) of the two (2) coinciding official holidays.